Default Deal Creates Gold Bounce

Gold futures rose today after the announcement of a tentative deal to pass debt limit legislation. The move reflected investors abandoning short positions in gold, which traditionally serves as a hedge against the dollar and U.S. Treasurys. “If you’ve been using [gold] as a trading vehicle, you want to get out, because there’s no more reason to be on the short side of gold,” said George Gero, precious metals strategist at RBC Capital Markets.